There are no trades for June. World stocks (EFA) turned the corner and tripped the BUY signal last month. On the other hand, US Real Estate (IYR) lost momentum and signaled a SELL in our last newsletter. This month, all positions stay put.
The Pro-Folio USA model evaluates its holdings on a monthly basis. There are no trades this month. As of the last trading day of May (29th), we have the following trade signals:
For existing investors:
You should have spent the month of May invested in the holdings above that are marked HOLD. You should have kept the cash equivalent of the positions marked AVOID, ready to invest when those segment signals turn positive.
For new investors:
If you are new to Pro-Folio USA this month, you should divide your portfolio into 5 equal parts, and invest an equal amount of money in each of the securities shown above, marked as “HOLD” or “BUY.” Because you didn’t invest in the “HOLD” components of the model at the time when the buy signal first turned positive, your return on these initial trades may not be reflective of the model’s typical expected returns.
Across the country, kids are getting out of school and families are preparing to embark on their summer plans. In the financial biz, the old adage goes “Sell in May and go away.” Summer can be a slow time for investments, but it can also be crazy as smaller investors have more capability to move the market when the big boys are “gone away.”
Fortunately for us, the Pro-Folio USA model lost less than 1% of value in 2008, the worst year in recent memory and the only year on record that Pro-Folio USA lost value. As shown in the 2014 performance numbers that I posted recently, the long term average growth of the model is north of 8% per year. We can continue to follow the model with confidence that our assets will be protected. Sleep well every night!
If you want to get the PDF booklet showing you how to implement the Pro-Folio USA trading model on your own, click here.
If you want to learn more about the Pro-Folio Global upgrade portfolio, click here.
Dear reader, thank you for your interest in Pro-Folio. I wish you a safe and happy summer!